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bixtya [17]
3 years ago
11

Palmer Products has outstanding bonds with an annual 8 percent coupon. The bonds have a par value of $1,000 and a price of $865.

The bonds will mature in 11 years. What is the yield to maturity on the bonds?
Business
1 answer:
Andre45 [30]3 years ago
6 0

The yield to maturity on the bonds is 10.0868%

<u>Explanation</u>:

Given,

Annual coupon rate = 8% = 0.08

Par value = $ 1000

Price = $ 865

                               N = 11 \times 1 .

                            PV = $ 865

                         PMT = ( Par Value \times The coupon rate) / F

                                 = ( 1000 \times 0.08 ) / 1

                                 = 80.

                           FV = 1000.

Financial calculator solution

the yield to maturity = I = 0.1008668

                                      = 10.0868% .

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The restriction on the building to prevent sale to persons of a particular race means it is unenforcable but the sale can go through.

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Therefore, the Option C is correct.

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2 years ago
Which of the following services will be provided by a full-service broker but not by a discount broker?
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Answer:

a. l and III

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Because of this, the clients of do not have the ability to purchase or sell a certain stock at request. They have to rely on the brokers to handle the complex issues within investing activities and trust them completely.

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This can be seen also in conditions where a principal gives instructions or job to an Agent, the actions of the agent will directly impact the Principal as the Agent is working according to the directives of the principal.

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5 0
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